Global Mezcal Market - 2022-2029

Global Mezcal Market - 2022-2029

Market overview

The global mezcal market is valued at USD XX million in 2021 and is forecasted to reach USD XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

Mezcal is a distilled alcoholic beverage made from a variety of maguey plants. Mezcal generally gives drinks a smoky flavor. Moreover, it is frequently combined with tequila to create smoky twists on classic cocktails, such as the Mezcal Margarita or Mezcal Paloma. The demand for mezcal, a tropical agave plant-based liquor, increased significantly over the past few years and is expected to increase further over the forecast period. The large millennial consumer base across the world is encouraging vendors to expand their geographical presence, which, in turn, is bolstering the mezcal market's growth. Consumers are preferring mezcal over other tequila products due to the availability of a variety of flavors.

Market Dynamics:

Increasing demand for luxury and premium beverages

Mezcal demand is predicted to rise due to the growing trend of premiumization, which leads to the consumption of high-end beverages. Mezcal, a tropical agave plant-based liquor, has shown a considerable increase in demand in recent years and is predicted to continue to do so over the forecast period. Wealthier consumers in established spirit markets are increasingly seeking out innovative and new premium products, as well as trading up to drinks of a specialist variety with high production value. As a result, compared to normal spirits, the number of premium spirits grew dramatically. The demand for premium mezcal outlines the global market's growth. It also emphasizes the opportunity for smaller manufacturers to collaborate with larger firms to access new markets, which is expected to be a critical step in ensuring the mezcal market's growth.

Market Segmentation:

Mezcal Joven is anticipated dominate the global market in 2021

Mezcal Joven dominated the market in 2021, accounting for XX percent of the total market share. Mezcal that hasn't been matured is known as Joven, or young mezcal. The most popular drink is Joven, followed by Reposado, which has a similar flavor to tequila. Mezcal Joven is less expensive than other types because it can be enjoyed fresh or matured for less than two months. It comes in various flavors, including citrus, green apple, and white pepper. Mezcal Joven is commonly used in cocktails to provide the holy flavor of sweet agave. Joven's heart is mostly made in a traditional Palenque in Mazatlan, but it is also farmed and distilled in Oaxaca (Mexico). The drink begins with a delicate and sparkling nose of wood smoke and savory herbs, followed by citrus, crisp, tart fruit, and a peppery tongue due to its more distinct and crisper taste than other mezcal varietals.

Based on distribution channels, online channels held the highest market revenue share of XX% in 2021. As e-commerce becomes more prominent, consumer preferences turn toward acquiring mezcal items. Price-conscious customers may use e-commerce channels to compare prices and find the best deal. With the immediate impact of COVID-19, customers' shopping behaviour has abruptly changed, and they have become reliant on buying mezcal in retail stores as well as internet stores; these two tendencies are expected to continue. Covid-19 presented the web channel with a huge possibility. As consumers follow social-distancing norms and avoid visiting physical locations, online retailers have seen a large boost in sales. Consumers hoarded mezcal at home for a longer run as a result of the pandemic, giving the market an unexpected boost

Geographical Penetration:

North America is expected to dominate the global mezcal market in 2021

In 2021, North America accounted for the highest proportion of the global mezcal market. In the North American region, the United States is one of the most important markets for mezcal. Ilegal Mezcal, Rey Campero, and others are among the major North American mezcal business participants. These brewers are always developing new varieties of mezcal with improved tastes and attributes to attract new customers and expand the region's consumer base. Innovative marketing programs to expand the product's reach across North America will drive up demand for mezcal. Because mezcal is usually more expensive than conventional wine and beer, per capita income and affordability directly impact mezcal usage in North America. People in their forties and fifties strongly prefer both conventional and expensive drinks. As a result, their contribution to the growth of the North American mezcal industry is expected to be greater in the coming years.

Competitive Landscape:

Due to the large number of small and large players who dominate the industry, the mezcal market is highly competitive. Pernod Ricard, Ilegal Mezcal, Diageo PLC, and William Grant & Sons Ltd are some of the market's most prominent players. Larger competitors are acquiring smaller firms in the mezcal market to exploit the luxury spirits category and expand their product variety. Diageo, for example, recently announced that it had struck a deal to purchase Aviation American Gin from Aviation Gin LLC and Davos Brands LLC. In addition to Astral Tequila, Sombra Mezcal, and TYKU Sake, Diageo is acquiring the other products in the Davos Brands portfolio. Pernod Ricard established a partnership with super-premium mezcal brand Ojo de Tigre, a traditional Mexican liquor, in July 2021. Ojo de Tigre is an artisanal mezcal made in small batches according to traditional traditions. Only Tobala and Espada agave plants are used, resulting in a smooth, sweet, and herbal flavor profile that may be enjoyed plain or in cocktails. Ojo de Tigre comes in two flavors: Joven and reposado, and is packaged in a distinctive and famous bottle.

COVID-19 Impact: Positive impact on the mezcal market

The COVID19 crisis significantly has affected this market. The reason for which the market got affected was because of declining tourism and closures of bars, retail shops, and other stores. For example, Pernod Ricard S.A. which is one of the top players in this industry has reported a decline in sales growth by -9.5% in fiscal 2020. Although offline retailing stores were closed due to rules and regulations, sill the market has gained a rise through online and e-commerce sales. There was a raise of 42% of sales through online shopping of these alcoholic drinks. For instance, Mercado Libre, the largest Latin- America's largest e-commerce retailer had estimated a growth of 81% in sales of the alcoholic drink.

Why Purchase the Report?

Understand the current market scenario and viability of global mezcal market over the forecast period

Visualize the composition of the global mezcal market in terms of type, and distribution channel to identify major players, growth potential, and market strategies

Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period

Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining in the market

What we offer?

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study

Excel data sheet with valuable data points of the global mezcal market – Regional and Country level segmentation

Product mapping in excel for the key products of all major market players

Market Share Analysis covering business revenues ($) and revenue share (%) of key market players

The global mezcal market report would provide an access to approximately 55 market data tables, 40 figures and 180 pages

Target Audience:

Alcoholic Beverages Manufacturers

Food and Beverage Industry

Industry Investors

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Research Professionals